Steel Products Prices North America
May 11, 2021
Cargill Invests in New Ukraine Iron Ore Plant
Written by Sandy Williams
Cargill Metals and Canadian mining company Black Iron are teaming up to create a new iron ore plant in the Ukraine. The May 10 agreement gives Cargill offtake rights to the first 4 million metric tons of ore produced per year for the next 10 years along with profit sharing. On the profit share, Black Iron will receive 100% of the 65% iron content fines benchmark price, currently ~$230 per MT, and share with Cargill a portion of the incremental sale price of its higher iron content and low impurity magnetite product. In return, Cargill will provide financing of $75 million for the plant, which will produce 68% iron content magnetite pellets.
The higher iron content is expected to reduce steel-producing emissions by approximately 30% and put the proposed Ukraine plant among the top 4% of global production by iron content.
